What Qualifies as Insurance Twisting and What Doesn't?

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When it comes to such a thing as twisting insurance, in this area, there are many manipulations and methods of abuse that distinguish unscrupulous insurance agents from honest ones. Consider twisting insurance definition. We are talking about such behavior of an insurance agent when he encourages a potential client to refuse an already purchased insurance policy from another company. Defining an agent's actions as twisting and churning requires that they contain untruths and manipulations. In this case, this act will be considered a type of fraud. But in order to understand this issue in more detail, it is worth considering it in detail.


Twisting and churning insurance: characteristic features

When an unscrupulous insurance agent uses this method of interaction with a client, he uses the following manipulative techniques:

- He interprets a person's policy as unprofitable and inexpedient. Thus, the agent is trying to sow doubt that the person did the right thing by buying it. Otherwise, he would not become a potential client, and here lies the main manipulation. The agent offers the interlocutor what he already has and what he was not going to buy.

- The benefits of the proposed policy are exaggerated. In fact, the client receives an insurance product of the same quality as he already has. The proposed policy may even be less profitable, but the agent artificially exaggerates its advantages.

Thus, the twisting insurance term already speaks for itself. This is not an about fair competition or trying to convince the client based on real facts. The juggling of facts makes a person acquire a product he does not need.


How to define twisting in insurance: what it is not

For an act to fall under the term described above, there must be a fact of manipulation and the imposition of an insurance policy on a person that he already has from another company. That is, if an agent conducts a fair comparison of two policies until the client has bought one, this will not fall under the definition of twisting in insurance.

Therefore, the issue is not the actual comparison of the two policies but:

1. the comparison is made based on unreliable and one-sided information;

2. they try to impose a new policy on a potential client when he already has another policy that meets his needs.

Such signs should be a guide when we are looking for an answer to the question “what does twisting mean in insurance?”


Why is it important to understand this terminology?

The accuracy of interpretations is of fundamental importance when we talk about a crime. And this act in most US states qualifies as a type of fraud. There are both law enforcement officers and honest insurance agents involved in this activity. Such scrupulousness is natural and justified.

If the problem had not been settled in the legal field, then two groups of people would have suffered massively from it at once. The first group is customers fooled into selling an unwanted insurance product. And here, the problem is much deeper than it might seem at first glance. Usually, we are talking about life and health insurance policies. Accordingly, in order to dissuade a person from using the policy that he had previously consciously chosen, the agent begins to put pressure on painful triggers. For most of us, the topics of life, death, and health are covered with a certain anxiety since we are talking about fragile and significant things. Therefore, answering the question “what is twisting in insurance terms?” psychologically, they call it violence.

The second group of subjects that suffer from this phenomenon are insurance companies that work in good faith and do not go beyond the legal framework. It turns out that they cannot counter dishonest insurance agents with an identical method of counteraction since they consider it unacceptable for themselves. But it is their policies that customers refuse if insurance churning and twisting worked. Honest business suffers as well as the deceived client in this case.


How to counteract the problem

When we have already figured out what is twisting in insurance, it is also worth understanding how you can respond to these phenomena. If we know about such a case or they tried to impose such a policy on us, you can contact the police since we are talking about fraud. There is also the National Association of Insurance Commissioners. The association consists of different departments, including the legal one. Therefore, there are specialists who can provide a proper response to the activities of an unscrupulous insurance agent.

Every industry needs to operate with integrity, whether it's insurance, call tracking for healthcare providers, or real estate brokerage. Therefore, cases of violation of the law should not be ignored. Otherwise, another person who has less knowledge or less developed critical thinking may become a victim of such fraudulent activity. As a result, he will refuse an insurance product that suits him and spend money on a policy with exaggerated benefits.



Summing up, it is worth dwelling on the following theses:

1. twisting and churning is a crime, not an attempt at healthy competition;

2. such fraudulent activity includes manipulation, providing false information, and imposing on the client what he does not need;

3. to understand what is such an activity, you need to protect yourself and your loved ones;

4. it is worth reporting to the authorized bodies if you have become a witness or a victim of this crime;

5. twisting and churning affect both clients and conscientious companies that are prevented from working.

Legal awareness of people is the best counteraction to insurance fraud. Take care of yourself, and do not trust insurance agents whose arguments are suspicious.

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